Experts say a proposed permanent fee of $103,265—nearly Rs 1 crore—on H-1B petitions may compel US employers to reconsider their approach to hiring foreign talent, immigration, and workforce planning.
They warned that the effect could be particularly harsh on entry-level positions and would make visa sponsorship increasingly challenging for startups and smaller firms.
The fee would be added to current H-1B costs, shifting sponsorship from a routine administrative outlay to a potentially weighty hiring choice.
While major technology firms may still be willing to pay for specialised talent, smaller companies might struggle to justify the financial burden of sponsoring a foreign employee.
However, the increase in visa fees may affect individuals and companies in varying ways, particularly those that have long depended on the H-1B program to recruit global talent, and could ultimately influence the overall skill base in the United States.
The consequences go beyond the expense of single hires. Angustia cautioned that this policy could significantly hinder US employers’ ability to compete for skilled professionals in technology, engineering, artificial intelligence, healthcare, and scientific research.
Targeted Hiring: Companies may be engaged in targeted hiring of professionals. As other nations vie for the same pool of skilled professionals, a fee of this magnitude makes the United States relatively less appealing to both highly qualified workers and the employers who seek to hire them.
For businesses, the probable outcome is not a complete halt to international recruitment, but a more limited view of which positions warrant sponsorship.
International Students: The suggested fee also prompts concerns about the pathway from U.S. universities to employment, especially for international students who have typically joined the American workforce after completing their degrees at U.S. institutions.
A key point in the debate is whether students already in the US would avoid the fee when transitioning from F-1/OPT to H-1B.
That could lead employers to reserve H-1B sponsorship for specialised or senior roles, while considering candidates who already have unrestricted work authorisation or moving some functions outside the US.
US education:If that interpretation is correct, international graduates on OPT would incur the same proposed six-figure expense when an employer sponsors them for a cap-subject H-1B.
This may reduce employers’ willingness to keep international graduates after they finish their U.S. studies and could also influence students’ decisions about whether to pursue an education in the United States at all.
Entry level Talent: The fee could intensify the effects of the H-1B wage-based selection system, which prioritizes registrations tied to higher salary levels.
This is especially important for recent graduates, who typically begin their careers earning lower wages.
The planned fee is expected to be contested in court by companies and industry associations, though it remains unclear whether judges will act before the upcoming H-1B lottery.
The core legal issue is whether the US Department of Homeland Security possesses explicit statutory authority to levy a fee of this size, and whether the amount can be legitimately defended as a regulatory or administrative charge.
Previous legal challenges concerning a distinct $100,000 H-1B fee offer further context, though the current proposal is advancing through the formal rulemaking process instead of by presidential proclamation.